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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5078 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 5078

To establish an independent entity within the Department of Housing and 
  Urban Development to acquire and maintain distressed real estate to 
 stabilize communities and increase the supply of affordable housing, 
                        and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 18, 2024

  Ms. Smith (for herself, Mr. Welch, and Mr. Merkley) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL

 
To establish an independent entity within the Department of Housing and 
  Urban Development to acquire and maintain distressed real estate to 
 stabilize communities and increase the supply of affordable housing, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Homes Act of 
2024''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
Sec. 4. Establishment of authority.
Sec. 5. Purposes of the authority.
Sec. 6. Powers and duties.
Sec. 7. Requirements for social housing providers.
Sec. 8. Labor and Buy America provisions.
Sec. 9. Duty to serve.
Sec. 10. Community and tenant opportunity to purchase multifamily 
                            rental properties.
Sec. 11. Maximum contingent liability.
Sec. 12. Authority funds.
Sec. 13. Authorization of appropriations for Authority.
Sec. 14. Authorization of appropriations for public housing backlog.
Sec. 15. Repeal of Faircloth Amendment.
Sec. 16. Miscellaneous.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that the national protracted housing 
crisis has existed for decades and only continues to worsen, with the 
lack of quality and affordable housing affecting all but the wealthiest 
households.
    (b) Purposes.--The purposes of this Act are--
            (1) to establish a robust public entity to develop a stock 
        of permanently affordable, quality, publicly-financed, and 
        climate resilient housing that is shielded from market 
        speculation; and
            (2) to stabilize communities and improve general welfare by 
        maintaining a housing system, as an alternative to market-rate 
        housing, that offers affordability, fair housing choice, and 
        quality to all families that are unable to afford market rents, 
        including families in underserved communities and families that 
        have experienced historical legacies of exclusion.

SEC. 3. DEFINITIONS.

    (a) In General.--In this Act:
            (1) Affordable housing.--The term ``affordable housing'' 
        means housing that complies with the standards established 
        under section 7(c).
            (2) At risk of homelessness.--The term ``at risk of 
        homelessness'' has the meaning given the term in section 401 of 
        the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11360).
            (3) Authority.--The term ``Authority'' means the Housing 
        Development Authority established under section 4(a).
            (4) Board.--The term ``Board'' means the Board of Directors 
        of the Authority established under section 4(c)(1).
            (5) Community land trust.--The term ``community land 
        trust'' means a nonprofit entity or a State or local government 
        or instrumentality thereof that--
                    (A) is not sponsored by a for-profit organization;
                    (B) has as a primary purpose the provision and 
                maintenance of housing that provides long-term 
                affordability for low-income families and moderate-
                income families;
                    (C) provides housing described in subparagraph (B) 
                using a ground lease, deed covenant, or other similar 
                legally enforceable measure, as determined by the 
                Authority, that--
                            (i) keeps the housing permanently 
                        affordable to low-income families and moderate-
                        income families; and
                            (ii) enables low-income families and 
                        moderate-income families to purchase the 
                        housing for homeownership; and
                    (D) maintains preemptive purchase options to 
                purchase the property so the housing remains affordable 
                to low-income families and moderate-income families.
            (6) Community-led development organization.--The term 
        ``community-led development organization'' means a nonprofit 
        organization comprised of or acting on behalf of individuals 
        seeking to establish, develop, maintain, and reside in a 
        resident-owned multifamily housing building that includes 
        shared community amenities, whether through the development of 
        a new building or the rehabilitation or conversion of an 
        existing building.
            (7) Consumer price index.--The term ``Consumer Price 
        Index'' means the most recent Consumer Price Index for All 
        Urban Consumers published by the Bureau of Labor Statistics of 
        the Department of Labor.
            (8) Department.--The term ``Department'' means the 
        Department of Housing and Urban Development.
            (9) Distressed.--The term ``distressed'' means, with 
        respect to an asset, that--
                    (A) the obligor thereof is subject to a bankruptcy, 
                insolvency, liquidation, or other similar action or 
                proceeding;
                    (B) the obligor thereof has failed to make any 
                payment of principal or interest with respect to the 
                asset when due (whether at scheduled maturity or any 
                accelerated date of maturity or any other date fixed 
                for payment or prepayment thereof or otherwise) beyond 
                any period of grace provided with respect thereto;
                    (C) the asset is classified by the lender as 
                ``nonperforming'' pursuant to generally accepted 
                accounting principles; or
                    (D) the asset is in a physically distressed 
                condition, as shall be defined by the Authority.
            (10) Eligible entity.--The term ``eligible entity'' means 
        an entity described in subparagraph (A) of section 6(c)(2), 
        subject to subparagraph (B) of that section.
            (11) Family.--The term ``family'' includes an individual.
            (12) Homeless.--The term ``homeless'' has the meaning given 
        the term in section 103 of the McKinney-Vento Homeless 
        Assistance Act (42 U.S.C. 11302).
            (13) Income.--The term ``income'' has such meaning as 
        provided by the Secretary that is consistent with regulations 
        issued by the Secretary in implementing section 3(b) of the 
        United States Housing Act of 1937 (42 U.S.C. 1437a(b)).
            (14) Indian tribe.--The term ``Indian Tribe'' has the 
        meaning given the term ``Indian tribe'' in section 4 of the 
        Native American Housing Assistance and Self-Determination Act 
        of 1996 (25 U.S.C. 4103).
            (15) Permanent affordability.--The term ``permanent 
        affordability'' means a designation for a residential property, 
        the affordability of which is preserved in perpetuity through--
                    (A) a real property interest held by the Authority; 
                and
                    (B) the inclusion of a permanently affordable 
                social housing use restriction in the deed to the land 
                and, where applicable, any ground lease to the 
                improvements on the land.
            (16) Permanently affordable social housing; social 
        housing.--
                    (A) In general.--The term ``permanently affordable 
                social housing'' or ``social housing'' means housing, 
                including newly constructed, acquired, rehabilitated, 
                or renovated housing, that meets the following 
                requirements:
                            (i) Social ownership.--The housing is owned 
                        by the Authority or an eligible entity.
                            (ii) Permanent stability.--The housing is--
                                    (I) protected from for-profit 
                                investors and the speculative market; 
                                and
                                    (II) subject to restrictions that 
                                ensure that it is never resold for 
                                excessive profit, as determined by the 
                                Authority.
                            (iii) Permanent affordability.--The housing 
                        meets the requirements of paragraph (15) and, 
                        in the aggregate, is permanently affordable to 
                        families at a range of income levels, including 
                        extremely low-income families and no-income 
                        families.
                            (iv) Community control.--The housing is 
                        developed, owned, managed, and operated in a 
                        way that is democratically accountable to 
                        residents, the community, and the public, with 
                        residents having a direct role in management 
                        and decision-making, such as through a tenant 
                        organization.
                            (v) Equitable.--The housing promotes racial 
                        and gender equity and prevents displacement of 
                        communities of color.
                            (vi) Sustainability.--The housing is built, 
                        renovated, or rehabilitated using construction 
                        methods and materials that--
                                    (I) prioritize energy efficiency, 
                                the long-term safety and health of 
                                occupants, and disaster resilience; and
                                    (II) are guided by an evidence-
                                based approach designed to reduce 
                                pollution burdens and climate 
                                volatility.
                            (vii) High quality and accessible.--The 
                        housing is of high quality and accessible to 
                        all people regardless of age, physical need, or 
                        other factors.
                            (viii) Tenant security.--The housing 
                        provides renter protections to residents.
                    (B) Public housing.--The Authority may provide any 
                funding or support to public housing that is necessary 
                for the public housing to meet the requirements under 
                subparagraph (A), consistent with the rules and 
                regulations that are otherwise applicable to public 
                housing.
            (17) Permanently affordable social housing use 
        restriction.--The term ``permanently affordable social housing 
        use restriction'', with respect to real property, means a use 
        restriction, established by the Secretary by rulemaking after 
        notice and an opportunity for public comment, that ensures that 
        the property complies with the requirements under subparagraph 
        (A) of the definition of ``permanently affordable social 
        housing''.
            (18) Public housing.--The term ``public housing'' means 
        housing assisted under section 9 of the United States Housing 
        Act of 1937 (42 U.S.C. 1437g).
            (19) Public housing agency.--The term ``public housing 
        agency'' has the meaning given the term in section 3(b) of the 
        United States Housing Act of 1937 (42 U.S.C. 1437a(b)).
            (20) Resident-owned cooperative.--The term ``resident-owned 
        cooperative'' means a nonprofit entity that supports shared-
        equity homeownership that--
                    (A) has as a primary purpose the provision and 
                maintenance of owner-occupied housing that provides 
                long-term affordability for low-income families and 
                moderate-income families;
                    (B) provides housing described in subparagraph (A) 
                using a limited equity cooperative agreement, or other 
                similar legally enforceable measure, as determined by 
                the Authority, that--
                            (i) keeps the housing permanently 
                        affordable to low-income families and moderate-
                        income families; and
                            (ii) enables low-income families and 
                        moderate-income families to purchase the 
                        housing for homeownership; and
                    (C) maintains preemptive purchase options to 
                purchase the property so the housing remains affordable 
                to low-income families and moderate-income families.
            (21) Secretary.--The term ``Secretary'', except as 
        otherwise provided, means the Secretary of Housing and Urban 
        Development.
            (22) Short sale.--The term ``short sale'' means a sale of a 
        residential real property that is subject to a mortgage, deed 
        or trust, or other security interest that secures a residential 
        mortgage loan that--
                    (A) will result in proceeds in an amount that is 
                less than the remaining amount due under the mortgage 
                loan; and
                    (B) requires authorization by any securitization 
                vehicle or other investment vehicle or holder of the 
                mortgage loan, or the servicer acting on behalf of such 
                a vehicle or holder.
            (23) Supportive services.--The term ``supportive services'' 
        means services that address the needs of persons served by a 
        project, including--
                    (A) provision of tenant organizing technical 
                assistance;
                    (B) establishment and operation of a child care 
                services program;
                    (C) establishment and operation of an employment 
                assistance program;
                    (D) provision of outpatient health services, food, 
                and case management;
                    (E) provision of mental health services and victim 
                services;
                    (F) provision of assistance in obtaining other 
                Federal, State, and local assistance available for 
                residents of the project, including mental health 
                benefits, employment counseling, and medical 
                assistance;
                    (G) provision of transportation services that 
                facilitate the ability of an individual to obtain and 
                maintain employment and access health care;
                    (H) provision of services for older adults;
                    (I) security services; and
                    (J) other services necessary to maintain housing 
                and sustain a quality housing community.
            (24) Tenant organization.--The term ``tenant 
        organization'', with respect to rental housing means a tenant-
        led organization--
                    (A) that seeks to--
                            (i) promote the collective interests and 
                        rights of the tenants;
                            (ii) improve housing conditions;
                            (iii) build renter authority; and
                            (iv) advocate for policy changes for the 
                        benefit of tenants; and
                    (B) which may be organized with respect to--
                            (i) housing sharing the same landlord or 
                        building; or
                            (ii) housing having different landlords or 
                        buildings.
            (25) Tribally designated housing entity.--The term 
        ``tribally designated housing entity'' has the meaning given 
        the term in section 4 of the Native American Housing Assistance 
        and Self-Determination Act of 1996 (25 U.S.C. 4103).
            (26) Underserved community.--The term ``underserved 
        community'' means a population sharing a particular 
        characteristic, or a geographic community, that--
                    (A) has been systematically denied a full 
                opportunity to participate in aspects of economic, 
                social, and civic life; and
                    (B) may include--
                            (i) Black, Latino, and Indigenous and 
                        Native American persons, Asian Americans and 
                        Pacific Islanders, and other persons of color;
                            (ii) members of religious minorities;
                            (iii) lesbian, gay, bisexual, transgender, 
                        and queer (commonly known as ``LGBTQ+'') 
                        persons;
                            (iv) persons with disabilities;
                            (v) persons who live in rural areas; and
                            (vi) persons otherwise adversely affected 
                        by persistent poverty or inequality.
    (b) Income Levels.--
            (1) In general.--In this Act, subject to paragraph (2)--
                    (A) the term ``moderate-income family'' means a 
                family that satisfies the definition of the term 
                ``persons of moderate income'' in section 102(a) of the 
                Housing and Community Development Act of 1974 (42 
                U.S.C. 5302(a));
                    (B) the term ``low-income family'' means a family 
                that satisfies the definition of the term ``persons of 
                low income'' in section 102(a) of the Housing and 
                Community Development Act of 1974 (42 U.S.C. 5302(a)); 
                and
                    (C) the term ``extremely low-income family'' means 
                a family that satisfies the definition of the term 
                ``extremely low-income families'' in section 3(b)(2) of 
                the United States Housing Act of 1937 (42 U.S.C. 
                1437a(b)(2)).
            (2) Authority of secretary to establish variations.--For 
        purposes of paragraph (1) and subject to the considerations 
        described in section 7(c)(4), the Secretary may establish a 
        percentage of median income for a term defined in paragraph (1) 
        of this subsection for any area that is higher or lower than 
        the percentage set forth in the applicable provision of law 
        referenced in such paragraph (1) if the Secretary finds the 
        variation to be necessary because of unusually high or low 
        family incomes or cost of living in the area.

SEC. 4. ESTABLISHMENT OF AUTHORITY.

    (a) Establishment.--
            (1) In general.--There is established within the Department 
        of Housing and Urban Development an independent authority to be 
        known as the ``Housing Development Authority'', to carry out 
        the purposes set forth in section 5.
            (2) Applicability of other laws.--Except as otherwise 
        provided expressly by law, all Federal laws concerning public 
        or Federal contracts, property, works, officers, employees, 
        budgets, or funds, including chapters 5 and 7 of title 5, 
        United States Code, shall apply to the exercise of the powers 
        of the Authority.
            (3) Autonomy.--Notwithstanding any other provision of law, 
        including the Department of Housing and Urban Development Act 
        of 1965 (42 U.S.C. 3531 et seq.), the Secretary may not--
                    (A) intervene in any matter or proceeding before 
                the Authority; or
                    (B) merge or consolidate the Authority, or any of 
                the functions or responsibilities of the Authority, 
                with any division or office of the Department.
            (4) Rules and orders.--No action of the Authority shall be 
        subject to approval or review by the Secretary, and the 
        Secretary may not delay or prevent any action by the Authority.
    (b) Ownership.--Any real property acquired by the Authority shall 
be acquired in perpetuity with the authority to convey properties to 
eligible entities.
    (c) Board.--
            (1) In general.--The Authority shall be governed by a Board 
        of Directors.
            (2) Membership.--
                    (A) In general.--The Board shall consist of 15 
                members appointed by the President, by and with the 
                advice and consent of the Senate, one of whom the 
                President shall designate as chairperson.
                    (B) Types of appointments.--Of the 15 members of 
                the Board--
                            (i) 9 shall be appointed under subparagraph 
                        (C); and
                            (ii) 6 shall be appointed under 
                        subparagraph (D).
                    (C) Stakeholder members.--
                            (i) In general.--Of the 9 members of the 
                        Board appointed under this subparagraph 
                        (referred to in this subsection as 
                        ``stakeholder members'')--
                                    (I) 2 shall be appointed from among 
                                the officers of Federal agencies who 
                                have experience and expertise with 
                                affordable and low-income housing and 
                                community development and financing, 
                                but at no time may more than 1 member 
                                be from any single such agency;
                                    (II) 2 shall represent labor 
                                organizations, as that term is defined 
                                in section 2 of the National Labor 
                                Relations Act (29 U.S.C. 152), of which 
                                building and construction employees are 
                                members;
                                    (III) 2 shall have expertise in 
                                housing finance, housing development, 
                                or housing management;
                                    (IV) 2 shall have technical 
                                expertise in architecture, affordable 
                                housing construction and financing, 
                                urban planning, or engineering; and
                                    (V) 1 shall be an expert in fair 
                                housing and civil rights.
                            (ii) Environmental expertise; diverse 
                        experience.--In appointing members under clause 
                        (i), the President--
                                    (I) shall appoint not less than 1 
                                individual who has extensive expertise 
                                in climate, environmental justice, or 
                                sustainable building; and
                                    (II) shall appoint a mix of 
                                individuals with experience in rural, 
                                urban, and Native communities.
                    (D) Resident members.--
                            (i) In general.--The 6 members of the Board 
                        appointed under this subparagraph (referred to 
                        in this subsection as ``resident Board 
                        members'') shall be residents of public housing 
                        or permanently affordable social housing.
                            (ii) Notice of expiration of term.--The 
                        Authority shall publish notice of the 
                        expiration of the term of a resident Board 
                        member not later than 90 days before the date 
                        of the expiration.
                            (iii) Vacancies.--If a vacancy occurs 
                        during the term of a resident Board member--
                                    (I) the Authority shall publish 
                                notice of the vacancy not later than 10 
                                business days after the vacancy occurs; 
                                and
                                    (II) the President shall appoint 
                                the successor resident Board member 
                                within a reasonable time after the 
                                expiration of 60 days following the 
                                provision of notice under subclause 
                                (I).
            (3) Terms.--
                    (A) In general.--A member of the Board shall serve 
                for a term of 4 years or until the member's successor 
                has been appointed, except as provided in subparagraphs 
                (B) and (C).
                    (B) Terms of initial appointees.--As designated by 
                the President at the time of appointment--
                            (i) of the stakeholder members first 
                        appointed in accordance with paragraph (2)(C)--
                                    (I) 4 shall be appointed for terms 
                                of 2 years each; and
                                    (II) 5 shall be appointed for terms 
                                of 4 years each; and
                            (ii) of the resident members first 
                        appointed in accordance with paragraph (2)(D)--
                                    (I) 3 shall be appointed for terms 
                                of 4 years each; and
                                    (II) 3 shall be appointed for terms 
                                of 6 years each.
                    (C) Vacancy.--
                            (i) Appointment for remainder of term.--Any 
                        member of the Board appointed to fill a vacancy 
                        occurring before the expiration of the term for 
                        which the member's predecessor was appointed 
                        shall be appointed only for the remainder of 
                        that term.
                            (ii) Service after expiration of term.--A 
                        member of the Board may serve after the 
                        expiration of that member's term until a 
                        successor has taken office.
                            (iii) Filling of vacancies.--A vacancy in 
                        the Board shall be filled in the manner in 
                        which the original appointment was made.
            (4) Prohibition.--No part of any earnings of the Authority 
        shall inure to the benefit of any member of the Board.
            (5) Open meetings.--The proceedings of the Board shall be 
        open to the public.
            (6) Comprehensive training program for board members; 
        technical assistance training for resident board members.--
                    (A) Requirement.--Each member of the Board shall 
                complete a training program, as developed by the 
                Authority--
                            (i) not later than 90 days after being 
                        appointed or reappointed to the Board; and
                            (ii) not less frequently than once every 2 
                        years thereafter.
                    (B) Establishment of program.--The Authority shall 
                establish and implement a comprehensive training 
                program for members of the Board on the proper 
                management of the Authority, including applicable laws 
                and topics relating to--
                            (i) open meetings;
                            (ii) public records;
                            (iii) conflicts of interest;
                            (iv) uniform procurement;
                            (v) housing finance;
                            (vi) fraud prevention;
                            (vii) fiduciary responsibilities;
                            (viii) fair housing;
                            (ix) tenant selection, occupancy, and 
                        participation policies;
                            (x) prohibiting discrimination in housing; 
                        and
                            (xi) best practices relating to the general 
                        inspection, maintenance, and repair of dwelling 
                        units and capital improvements in public 
                        housing and other social housing.
                    (C) Technical assistance.--
                            (i) Training for resident board members.--
                        The Authority shall provide independent 
                        technical assistance training to resident Board 
                        members with the goal of enabling resident 
                        Board members and members of tenant 
                        organizations to participate fully in the 
                        oversight of the Authority's operation and 
                        capital planning.
                            (ii) Training for residents generally.--The 
                        Authority shall permit residents of public 
                        housing and social housing who are not members 
                        of the Board to attend technical assistance 
                        training provided under clause (i).
                            (iii) Development of training program.--The 
                        Authority shall develop the training program 
                        provided under clause (i) in consultation 
                        with--
                                    (I) the Secretary;
                                    (II) government officials;
                                    (III) residents of public housing 
                                and social housing; and
                                    (IV) public housing and social 
                                housing advocacy and industry 
                                professional organizations.
    (d) Stocks, Bonds, and Certificates.--
            (1) In general.--The Authority may issue bonds guaranteed 
        by the United States to carry out the purposes of this Act, 
        which bonds shall be legal investments for--
                    (A) the deposits and the income derived therefrom 
                of savings banks;
                    (B) the trust funds of trust companies;
                    (C) the capital and other funds of insurance 
                companies; and
                    (D) funds over which the Department of the Treasury 
                has exclusive control.
            (2) Negotiable instruments.--The bonds, notes, and 
        certificates of indebtedness under this subsection shall 
        constitute negotiable instruments for all purposes.
            (3) Other characteristics.--The bonds, notes, and 
        certificates of indebtedness under this subsection--
                    (A) may be payable from the income of the Authority 
                or constitute a general obligation thereof;
                    (B) may be sold at not less than par, at public or 
                private sale;
                    (C) may contain any covenants, terms, and 
                conditions, as determined by the Authority, that are 
                not inconsistent with law; and
                    (D) may be issued with or without the corporate 
                seal.
    (e) Bylaws, Rules, and Regulations.--The Board may make such 
bylaws, rules, and regulations, not inconsistent with this Act, as may 
be necessary for the proper conduct of the affairs of the Authority, 
including provisions for--
            (1) compensation of members of the Board; and
            (2) the removal, resignation, or suspension of members of 
        the Board.
    (f) Officers and Employees.--
            (1) In general.--The Authority may select, employ, and fix 
        the compensation of such officers, employees, attorneys, or 
        agents as shall be necessary for the performance of the duties 
        of the Authority under this Act, without regard to the 
        provisions of other laws applicable to the employment or 
        compensation of officers, employees, attorneys, or agents of 
        the United States, notwithstanding section 4(a)(2).
            (2) Compensation.--No officer, employee, attorney, or agent 
        employed by the Authority shall be paid compensation at a rate 
        in excess of the rate provided for the members of the Board.
    (g) Salaries and Expenses.--The Authority--
            (1) shall pay such proportion of the salary and expenses of 
        the members of the Board, including resident Board members, and 
        of its officers and employees as the Board may determine to be 
        equitable, including childcare, transportation, and any other 
        necessary accommodations; and
            (2) may operate out of the physical locations of each of 
        the Federal Home Loan Banks, upon making reasonable 
        compensation to the Federal Home Loan Bank, as determined by 
        the Board.
    (h) Offices.--The Board may establish a principal office and 
regional offices of the Authority as the Board considers appropriate to 
carry out the responsibilities of the Authority.
    (i) Use of Mails.--The Authority may use the United States mails in 
the same manner and under the same conditions as other departments and 
agencies of the United States.
    (j) Operating Assistance.--The Authority may provide operating 
assistance to its properties and collect surplus cash, as defined by 
the Secretary.
    (k) Technology Infrastructure.--
            (1) In general.--In the acquisition and development process 
        of the Authority's technology infrastructure, the Authority 
        shall--
                    (A) focus on the needs of users and take into 
                consideration, to the extent practicable--
                            (i) the guidelines outlined in the U.S. Web 
                        Design Standards maintained by the General 
                        Services Administration and the Digital 
                        Services Playbook and TechFAR Handbook for 
                        Procuring Digital Services Using Agile 
                        Processes of the U.S. Digital Service; and
                            (ii) the relevant successor documents or 
                        recommendations of the guidelines described in 
                        clause (i);
                    (B) use modern, relevant privacy- and security-
                enhancing technology; and
                    (C) plan for the ongoing operations and maintenance 
                of its systems and products to ensure their ongoing 
                capability.
            (2) 21st century integrated digital experience act.--The 
        21st Century Integrated Digital Experience Act (44 U.S.C. 3501 
        note; Public Law 115-336) shall apply to the Authority in the 
        same manner as that Act applies to an Executive agency, except 
        that--
                    (A) any reference in that Act to the head of an 
                Executive agency shall be deemed to be a reference to 
                the Board; and
                    (B) any reference in that Act to the Chief 
                Information Officer of an Executive agency shall be 
                deemed to be a reference to an equivalent employee of 
                the Authority.

SEC. 5. PURPOSES OF THE AUTHORITY.

     The purposes of the Authority shall be to--
            (1) acquire real estate, public land, corporate-owned 
        vacant properties, including vacant, blighted, or underutilized 
        developments, and publicly assisted or privately owned 
        properties with liens, fees, or tax violations for the purpose 
        of--
                    (A) providing adequate housing for extremely low-
                income families, low-income families, and moderate-
                income families;
                    (B) preventing involuntary displacement of 
                families; and
                    (C) stabilizing communities, including underserved 
                communities that have experienced historical legacies 
                of exclusion;
            (2) operate and maintain the physical and functional 
        conditions of acquired properties to--
                    (A) preserve, modernize, and enhance the value, 
                affordability, habitability, climate resiliency, energy 
                efficiency, environmental sustainability, and 
                residential and community amenities for current and 
                future occupants of the real property; and
                    (B) contribute to the economic and social 
                conditions of the surrounding community;
            (3) rehabilitate, modernize, finance, and construct real 
        property to carry out the purposes of this Act described in 
        section 2(b);
            (4) rehabilitate, modernize, finance, and construct real 
        property so as to comply with such standards as the Authority 
        shall require to encourage maximum environmental performance, 
        including--
                    (A) using low-embodied carbon construction 
                materials, as determined using a Type III Environmental 
                Product Declaration (or a successor document) and in 
                coordination with the Administrator of the 
                Environmental Protection Agency;
                    (B) encouraging zero indoor or outdoor air 
                emissions;
                    (C) ensuring accessibility of the property in 
                accordance with--
                            (i) section 504 of the Rehabilitation Act 
                        of 1973 (29 U.S.C. 794);
                            (ii) titles II and III of the Americans 
                        with Disabilities Act of 1990 (42 U.S.C. 12131 
                        et seq.; 42 U.S.C. 12181 et seq.);
                            (iii) the Architectural Barriers Act of 
                        1968 (42 U.S.C. 4151 et seq.); and
                            (iv) the requirements under section 
                        804(f)(3)(C) of the Fair Housing Act (42 U.S.C. 
                        3604(f)(3)(C)) relating to design and 
                        construction;
                    (D) reflecting the highest international 
                architectural standards and the architectural standards 
                of the neighborhood and the community in which the real 
                property is situated; and
                    (E) employing innovative design principles and 
                materials to advance public safety, fire safety and 
                social infrastructure;
            (5) advance the streamlining of construction procedures and 
        development processes, which shall include engaging with 
        jurisdictions on permitting and zoning reform, within and 
        across all levels of government to reduce project time and cost 
        burden, while maintaining high-quality standards;
            (6) establish and use model policies and procedures for 
        engaging community members, including community members at 
        highest risk of housing displacement and unaffordability, and 
        local governments to ensure projects leverage community 
        expertise and responsive feedback to accurately and equitably 
        assess and address local or regional needs for additional 
        housing;
            (7) convey acquired real property to eligible entities that 
        will use it to guarantee affordable, habitable, and 
        environmentally sustainable housing to extremely low-income 
        families, low-income families, and moderate-income families;
            (8) finance and support the transfer of acquired property 
        to eligible entities, which may include technical assistance, 
        administrative support, or ongoing operational support;
            (9) provide an appropriate and expedient manner for owners 
        of distressed properties to transfer ownership of those 
        properties to the Authority;
            (10) stabilize neighborhoods by reducing--
                    (A) foreclosures; and
                    (B) blighted or neglected real property;
            (11) across the portfolio of the Authority's properties, 
        encourage a range of housing types that accommodate homeless 
        families, families at risk of homelessness, and extremely low-
        income families, low-income families, and moderate-income 
        families unable to afford market rents;
            (12) promote intentional placement of housing in a balance 
        of neighborhoods affording future residents choice in where 
        they live, which may include proximity to work, transit, 
        childcare, education, healthcare, access to food, and 
        culturally relevant community resources;
            (13) ensure that, within any real property--
                    (A) the quality of comparable dwelling units does 
                not materially differ between units at various price 
                levels;
                    (B) access to services and facilities does not 
                materially differ between units at various price 
                levels; and
                    (C) units at various price levels are not--
                            (i) physically located apart from one 
                        another; or
                            (ii) outwardly identifiable according to 
                        affordability level;
            (14) establish dignified, accessible, and streamlined 
        processes for residents that minimize information collection 
        burden, ensure privacy, and reduce barriers to accessing and 
        maintaining affordable housing;
            (15) coordinate with the Secretary of Health and Human 
        Services, the Secretary of Agriculture, and the Secretary of 
        Education to facilitate collaborative or co-located supportive 
        service programs, which may include--
                    (A) childcare and early childhood education;
                    (B) out-of-school time programs;
                    (C) food and nutrition programs;
                    (D) health care programs;
                    (E) programs for older adults; and
                    (F) other programs;
            (16) acquire housing that enables the Authority to assist 
        people who wish to voluntarily relocate out of areas at high 
        risk for extreme weather and into safer, affordable housing;
            (17) in areas affected by a natural disaster or emergency 
        declaration, acquire housing and assist with relocation and the 
        provision of safe, affordable housing;
            (18) encourage public land banking for permanently 
        affordable social housing;
            (19) preserve and improve existing public housing 
        developments and affordable housing stock;
            (20) provide relief to mortgage borrowers experiencing risk 
        of foreclosure and preserve homeownership in times of economic 
        distress or market instability; and
            (21) affirmatively further fair housing by overcoming 
        patterns of segregation, eliminating inequities in access to 
        housing and related community assets, and fostering inclusive 
        communities free from barriers that restrict access to 
        opportunity based on protected characteristics.

SEC. 6. POWERS AND DUTIES.

    (a) Acquisition and Purchase.--
            (1) In general.--The Authority may acquire or purchase any 
        real estate property for use as social housing through any 
        legal means, including as provided in this subsection.
            (2) Rights of first negotiation, offer, and refusal.--
                    (A) In general.--Subject to any applicable contract 
                in effect on the date of enactment of this Act, and 
                subject to the right of first refusal allowed by 
                section 42(i)(7) of the Internal Revenue Code of 1986, 
                the owner of any real property provided assistance by 
                the Department, including public housing units and land 
                subject to demolition, disposition, or conversion, 
                shall afford the Authority a right of first 
                negotiation, first offer, and first refusal to 
                purchase, acquire, or otherwise receive the real 
                property at a price that does not exceed the sum of--
                            (i) the amount of outstanding indebtedness 
                        secured by the real property; and
                            (ii) any associated amount of Federal, 
                        State, or local tax or other contractual 
                        liability projected to be imposed as a result 
                        of the sale, disposition, transfer, or other 
                        conveyance of the real property to the 
                        Authority under this subsection.
                    (B) Relocation.--Relocation of a household due to 
                any acquisition, rehabilitation, or demolition under 
                this section of any property assisted by the Department 
                shall be subject to the Uniform Relocation Assistance 
                and Real Property Acquisition Policies Act of 1970 (42 
                U.S.C. 4601 et seq.) and part 24 of title 49, Code of 
                Federal Regulations, or any successor regulation.
            (3) Eminent domain.--
                    (A) Power.--The Authority may acquire properties 
                for the purposes described in section 5 by the exercise 
                of the right of eminent domain in a court of competent 
                jurisdiction.
                    (B) Scope of power.--The Authority--
                            (i) shall use the eminent domain power of 
                        the Authority--
                                    (I) in a manner consistent with the 
                                purposes described in section 5; and
                                    (II) to preserve and create social 
                                housing; and
                            (ii) may use the eminent domain power of 
                        the Authority--
                                    (I) if residents of federally 
                                assisted housing form a tenant 
                                organization and petition the Authority 
                                to acquire the property;
                                    (II) if a State or local government 
                                is seeking to block the development of 
                                affordable housing (including a project 
                                not already supported by the 
                                Authority); or
                                    (III) to support transit-oriented 
                                development.
                    (C) Prohibited uses.--The Authority may not use the 
                eminent domain power of the Authority--
                            (i) for widespread displacement of 
                        individuals or families;
                            (ii) for the destruction of communities;
                            (iii) in a manner that is targeted on the 
                        basis of any protected characteristic; or
                            (iv) for the development of a highway or 
                        other similar infrastructure project that is 
                        ancillary to or not required for the 
                        preservation or creation of affordable housing.
                    (D) Engagement.--When using the eminent domain 
                power, the Authority shall--
                            (i) meaningfully engage with communities 
                        affected by the use of the eminent domain 
                        power;
                            (ii) enter into community benefit 
                        agreements to ensure displacement through the 
                        use of the eminent domain power is minimized; 
                        and
                            (iii) provide reasonable alternatives for 
                        any individuals displaced or potentially harmed 
                        by the use of the eminent domain power.
            (4) Receivership.--The Authority may, notwithstanding any 
        other provision of law, take over as receiver for residential 
        real estate properties, if appointed by the court or official 
        authorized under law to appoint a receiver for a financial 
        institution, public housing agency, or other entity, to ensure 
        maintenance of quality for the benefit of the inhabitants and 
        the community, including undertaking maintenance and renovation 
        activities necessary to maintain or achieve compliance with 
        applicable building, safety, health, and habitability codes and 
        requirements.
    (b) Operation and Management.--The Authority may--
            (1) hold any real property acquired under subsection (a) 
        for the purpose of maintaining or increasing social housing 
        stock;
            (2) operate real property described in paragraph (1) as 
        rental property and collect income; and
            (3) update and improve real property described in paragraph 
        (1) to maintain quality and conditions, which may include 
        actions to retrofit and update the real property to be energy 
        efficient, low-carbon, safe, healthy, climate-resilient, and 
        accessible, including retrofits and updates for--
                    (A) energy efficiency, including--
                            (i) installing energy efficient windows;
                            (ii) super-insulating roofs and exterior 
                        walls;
                            (iii) electrifying water heating;
                            (iv) installing electric heat pumps for 
                        heating or air conditioning; and
                            (v) increasing the airtightness of building 
                        envelopes, heat recovery systems, and 
                        ventilation systems;
                    (B) remediation to--
                            (i) eliminate any mold, asbestos, lead-
                        based paint, lead-based paint hazards, lead 
                        pipes, radon, or other toxins or contaminants 
                        in the real property or otherwise affecting 
                        residents of the real property; and
                            (ii) utilize least toxic building 
                        materials;
                    (C) in-unit efficiency upgrades, including 
                installing energy efficient insulation and efficient 
                and all-electric appliances;
                    (D) providing drinking water, including replacing 
                pipes and ensuring compliance with the Safe Drinking 
                Water Act (42 U.S.C. 300f et seq.) and other applicable 
                standards of the Environmental Protection Agency;
                    (E) energy systems, including installing renewable 
                energy rooftops, renewable energy generation, and 
                photovoltaic glass windows, purchasing clean energy 
                grid supply in bulk, and investing in community-scale 
                energy systems;
                    (F) emergency response, including installing 
                battery storage for backup and rigid foam wall 
                insulation in hurricane and earthquake-prone areas to 
                create shear walls and resistance to structural damage 
                from walls tilting or falling during high winds or 
                earthquakes;
                    (G) transportation, including providing dedicated 
                infrastructure for transportation by bicycle, electric 
                bicycle, micromobility, or electric vehicles, including 
                charging stations; and
                    (H) otherwise meeting minimum property standards 
                established by the Authority or the Secretary.
    (c) Support to Eligible Entities.--
            (1) In general.--The Authority--
                    (A) may convey any real estate property owned or 
                held by the Authority to an eligible entity under 
                paragraph (2) for use as affordable housing under 
                section 7(c);
                    (B) may not convey real property that is 
                uninhabitable under this subsection unless the 
                Authority has--
                            (i) taken any actions necessary to bring 
                        the real property into compliance with 
                        applicable building, safety, health, and 
                        habitability codes and requirements; or
                            (ii) entered into such agreements with the 
                        conveyee sufficient to ensure that any actions 
                        necessary to bring the real property into 
                        compliance with applicable building, safety, 
                        health, and habitability codes and requirements 
                        will be taken before the property is occupied;
                    (C) finance or assist in financing the acquisition 
                of residential real estate properties by eligible 
                entities under paragraph (2) for use as affordable 
                housing;
                    (D) contract directly with any eligible entity for 
                the purpose of developing and managing an affordable 
                housing project involving the purchase or acquisition 
                of the right to use completed or remodeled dwelling 
                units, including condominium units, individual 
                buildings that are part of a larger development, or a 
                portion of the units in a multifamily development, or 
                the construction of new buildings, except that--
                            (i) the project shall be subject to rules 
                        and regulations promulgated by the Authority, 
                        which shall include a procedure for providing 
                        public notice of the availability of funding 
                        and a ranking of priority for projects 
                        according to criteria for selection;
                            (ii) the project shall seek to reasonably 
                        comply with any applicable laws, ordinances, 
                        and regulations of the State and political 
                        subdivision thereof in which the project is 
                        located, relating to the construction and 
                        repair of buildings, zoning, and the protection 
                        of public health; and
                            (iii) the project budget may include 
                        capital funds to establish spaces for 
                        supportive services and funds to provide such 
                        services.
            (2) Eligible entities.--
                    (A) In general.--For purposes of conveyance of 
                assets under this subsection, the following entities 
                shall be eligible entities:
                            (i) A mission-driven nonprofit organization 
                        that--
                                    (I) has as one of its primary 
                                purposes--
                                            (aa) the provision of 
                                        housing that is affordable to 
                                        low-income families and 
                                        moderate-income families; or
                                            (bb) the provision of 
                                        evidence-based supportive 
                                        services, shelter, or housing 
                                        assistance for homeless persons 
                                        or families or those at risk of 
                                        homelessness; or
                                    (II) is otherwise considered by the 
                                Authority as a suitable purchaser.
                            (ii) A tenant organization, resident-owned 
                        cooperative, or community-led development 
                        organization.
                            (iii) A public housing agency.
                            (iv) A State, local, or Tribal governmental 
                        agency or other instrumentality.
                            (v) A community land trust.
                            (vi) Such other entities considered by the 
                        Authority as suitable conveyees.
                    (B) Ineligible entities.--
                            (i) In general.--The Authority shall 
                        establish standards for excluding entities from 
                        eligibility under subparagraph (A) as 
                        appropriate to ensure the preservation and 
                        permanent affordability of housing and 
                        protection of residents.
                            (ii) Maintenance of nonprofit 
                        eligibility.--The Authority shall establish 
                        procedures to ensure that any eligible entity 
                        that is a nonprofit organization, and to which 
                        a real property is conveyed under this 
                        subsection, maintains its nonprofit status 
                        under section 501(c)(3) of the Internal Revenue 
                        Code of 1986.
                    (C) Use restrictions.--A conveyance under this 
                subsection shall all be accompanied by a permanently 
                affordable social housing use restriction.
                    (D) Requirement.--An eligible entity may receive 
                conveyance of a real property or mortgage under this 
                subsection only if the eligible entity enters into such 
                binding agreements as the Authority considers necessary 
                to ensure that the property involved--
                            (i) is used as permanently affordable 
                        housing; and
                            (ii) cannot be resold, sold, transferred, 
                        or assigned into the private market.
                    (E) Reversionary interest.--
                            (i) In general.--The Authority shall hold a 
                        reversionary interest in each real property the 
                        Authority conveys to an eligible entity under 
                        this subsection, with the power to reclaim a 
                        real property if the eligible entity is found 
                        to have violated the permanently affordable 
                        social housing use restriction.
                            (ii) Compensation.--If the Authority 
                        exercises the reversionary interest under 
                        clause (i) on a real property, the Authority 
                        shall, at the time the Authority exercises the 
                        reversionary interest, compensate each 
                        stakeholder who holds limited equity in the 
                        real property.
                            (iii) Exception for public housing.--Clause 
                        (i) shall not apply to a real property that the 
                        Authority conveys to an eligible entity under 
                        this subsection for use as public housing.
                    (F) Limited equity.--A resident of a real property 
                acquired under this subsection by an eligible entity 
                may purchase limited equity in the real property, at 
                the discretion of the eligible entity.
                    (G) Limits on profit.--An eligible entity or 
                stakeholder claiming limited equity in a real property 
                conveyed by the Authority under this subsection shall 
                limit the sum of profit that may be taken on leasehold 
                interests and any shares of stock, equity, or other 
                financial interest in the property to a rate of 2 
                percent per year, compounded annually and adjusted for 
                inflation.
    (d) Financing.--
            (1) In general.--The Authority may issue, purchase, 
        acquire, hold, or service a mortgage on any real estate 
        property.
            (2) Distressed mortgages.--The Authority may seek to recoup 
        any losses incurred on a distressed mortgage acquired under 
        paragraph (1) from the responsible party if the Authority 
        determines, not later than 5 years after acquisition, that the 
        mortgage fell into distress due to--
                    (A) unfair or abusive terms or practices;
                    (B) fraud or deception; or
                    (C) equity stripping or other such actions taken by 
                an individual who constructively owns the real property 
                or exercises control over the real property.
            (3) Financing tenant purchases.--The Authority shall 
        provide technical assistance and financing to support the 
        purchase of rental properties by tenant organizations and 
        community land trusts, regardless of incorporation status, 
        under section 7 and otherwise, which may include financing such 
        repairs and improvements as may be necessary to comply with 
        subsection (c)(1)(B)(ii) of this section.
    (e) Clearinghouse.--To facilitate the exercise of the powers under 
subsections (a) through (d), the Authority shall establish a 
clearinghouse--
            (1) for the Authority to provide notice of, and to market, 
        in accordance with the requirements of this Act, real estate 
        assets held by the Authority;
            (2) for owners of distressed real estate assets to provide 
        notice of the availability of, and to market, such assets to 
        the Authority; and
            (3) for public availability of notices provided to the 
        Authority under section 10.
    (f) Rulemaking.--The Authority may promulgate any regulations 
necessary to carry out the powers, duties, and functions of the 
Authority.
    (g) Annual Report to Congress.--The Authority shall annually 
provide a report to Congress evaluating the effectiveness of the 
Authority's actions.
    (h) Preservation of Affordability.--The Authority may monitor the 
affordability of homeownership and adopt internal policies or recommend 
congressional action, as needed, to preserve affordability.

SEC. 7. REQUIREMENTS FOR SOCIAL HOUSING PROVIDERS.

    (a) Definition.--In this section, the term ``social housing 
provider'' means--
            (1) the Authority acting pursuant to section 6(b)(2); and
            (2) an eligible entity, with respect to real property 
        acquired under section 6(c)(1)(A).
    (b) General Applicability.--A social housing provider that makes 
social housing available for rent shall comply with the requirements of 
this section.
    (c) Accessibility and Affordability Standards.--The Authority shall 
establish affordability and accessibility standards for social housing, 
which shall--
            (1) ensure that units of social housing, in the aggregate, 
        are truly financially accessible to families at a range of 
        income levels, including--
                    (A) families who are homeless or at risk-of 
                homelessness; and
                    (B) extremely low-income families, low-income 
                families, and moderate-income families;
            (2) ensure that not less than 40 percent of dwelling units 
        are set aside for extremely low-income families in newly 
        constructed units of permanently affordable social housing or 
        other housing units preserved or rehabilitated as permanently 
        affordable social housing;
            (3) ensure that not less than 70 percent of dwelling units 
        are set aside for low-income families and extremely low-income 
        families; and
            (4) take into consideration--
                    (A) requirements for affordable housing under other 
                programs for assistance for affordable housing;
                    (B) Federal income thresholds in section 215(a) of 
                the Cranston-Gonzalez National Affordable Housing Act 
                (42 U.S.C. 12745(a));
                    (C) neighborhood-scale rental markets, which may 
                include Small Area Fair Market Rent standards published 
                by the Department; and
                    (D) household financial expenditures, burdens, or 
                costs, and historical legacies of exclusion, due to 
                which the Secretary may establish new, comprehensive 
                income thresholds, more generous than the thresholds 
                described in subclause (II) as reasonably feasible and 
                in accordance with financial sustainability.
    (d) Rents.--
            (1) Initial rent.--A social housing provider shall set the 
        initial annual rent plus the sum of fees charged to a household 
        living in permanently affordable social housing at 25 percent 
        of the adjusted gross income of the household.
            (2) Increases.--An increase in rent for a property 
        described in paragraph (1) may not exceed the lesser of--
                    (A) 3 percent per year; or
                    (B) the percentage increase (if any) in the 
                Consumer Price Index since the previous rent increase.
            (3) Recalibration.--Rent for a property described in 
        paragraph (1) shall be recalibrated to 25 percent of the 
        household's adjusted gross income--
                    (A) not less frequently than once every 5 years;
                    (B) when the household's adjusted gross income, as 
                defined by the Secretary, changes by 10 percent or 
                more; and
                    (C) when the household requests a recalibration due 
                to economic hardship under a process established by the 
                Authority.
            (4) Public housing rental guidelines and formula.--The 
        rental guidelines and formula described in section 3(a) of the 
        United States Housing Act of 1937 (42 U.S.C. 1437a(a)) shall 
        supersede paragraphs (1), (2), and (3) of this subsection with 
        respect to rent for a real property conveyed to a public 
        housing agency under section 7(c) for use and operation as 
        public housing.
    (e) Resident, Applicant, and Tenant Protections.--
            (1) In general.--A social housing provider shall comply 
        with the resident, applicant, and tenant protections under this 
        subsection.
            (2) Just-cause evictions.--
                    (A) In general.--A social housing provider may not 
                terminate or refuse to renew a tenancy except for just 
                cause and only pursuant to advance written notice to 
                the tenant and evidence of such just cause, in 
                accordance with this subparagraph.
                    (B) Definition of just cause.--For the purposes of 
                this paragraph, the term ``just cause'' means--
                            (i) at-fault just case, as described in 
                        subparagraph (C); or
                            (ii) no-fault just cause, as described in 
                        subparagraph (D).
                    (C) At-fault just-cause.--
                            (i) Grounds.--For purposes of this 
                        paragraph, at-fault just cause grounds for 
                        eviction are any of the following:
                                    (I) The tenant's failure to pay 
                                rent.
                                    (II) The tenant's engagement in 
                                serious criminal activity on the 
                                premises that poses an imminent and 
                                direct threat to the health or safety 
                                of other tenants.
                                    (III) The tenant causing 
                                substantial damage to the premises 
                                after being issued a written notice to 
                                correct the violation.
                                    (IV) The tenant maintaining, 
                                committing, or permitting the 
                                maintenance or commission of a nuisance 
                                at the property.
                                    (V) The tenant permitting the 
                                premises to be used for a criminal 
                                purpose.
                                    (VI) The tenant's refusal to 
                                execute the social housing provider's 
                                request for a written extension or 
                                renewal of a lease based on terms 
                                similar to the terms of the tenant's 
                                prior lease without an unreasonable 
                                rent increase.
                                    (VII) The tenant's refusal to 
                                deliver possession of the premises 
                                after providing written notice to the 
                                social housing provider of the intent 
                                to terminate the tenancy and after the 
                                social housing provider's acceptance of 
                                that notice.
                            (ii) Notice.--
                                    (I) Notice of violation.--Before a 
                                social housing provider issues a notice 
                                to terminate a tenancy for at-fault 
                                just cause based on a curable lease 
                                violation, as defined by the Authority, 
                                the social housing provider shall first 
                                give the tenant written notice of the 
                                violation and the opportunity to cure 
                                the violation within a reasonable 
                                period of time, subject to the time 
                                periods specified in paragraph (10)(A).
                                    (II) Notice of termination of 
                                tenancy.--If a tenant does not cure a 
                                violation within the reasonable period 
                                of time set forth in a notice under 
                                subclause (I), the social housing 
                                provider may serve the tenant with a 
                                notice of termination of tenancy 
                                without a further opportunity to cure 
                                the violation.
                                    (III) Uncurable lease violations.--
                                Nothing in this clause shall be 
                                construed to require notice in the case 
                                of an uncurable lease violation, as 
                                defined by the Authority.
                            (iii) Unreasonable rent increase.--For 
                        purposes of this subparagraph, the term 
                        ``unreasonable rent increase'' means an 
                        increase in rent that exceeds the lesser of--
                                    (I) 3 percent per year; or
                                    (II) the percentage increase (if 
                                any) in the Consumer Price Index since 
                                the previous rent increase.
                            (iv) Limitation.--
                                    (I) In general.--Notwithstanding 
                                clauses (i), (ii), and (iii), a social 
                                housing provider may not unfairly 
                                penalize an individual or an 
                                individual's household based on the 
                                individual's criminal history or minor 
                                legal infractions.
                                    (II) Authority.--To carry out 
                                subclause (I), the Authority, acting 
                                through the Board by rulemaking after 
                                notice and an opportunity for public 
                                comment--
                                            (aa) may define what 
                                        activities, crimes, and 
                                        convictions, if any, may result 
                                        in termination of a lease or 
                                        exclusion of a resident from 
                                        social housing; and
                                            (bb) shall establish 
                                        inclusive procedures, policies, 
                                        and regulations to support the 
                                        reintegration of individuals 
                                        with criminal records into 
                                        communities to ensure they have 
                                        access to stable housing.
                    (D) No-fault just-cause.--
                            (i) Grounds.--For purposes of this 
                        paragraph, no-fault just cause grounds for 
                        eviction are the following:
                                    (I) The social housing provider 
                                intends to remove the dwelling unit 
                                from the rental market or substantially 
                                remodel or demolish the dwelling unit.
                                    (II) The social housing provider is 
                                required to comply with a local 
                                ordinance or an order from a court or 
                                other governmental entity which 
                                requires the tenant to vacate the 
                                property.
                            (ii) Relocation costs.--In the case of a 
                        no-fault just cause termination of tenancy, the 
                        evicting social housing provider shall assist 
                        the tenant with relocation costs regardless of 
                        the tenant's income by providing--
                                    (I) a direct payment of 1 month's 
                                rent; or
                                    (II) a written waiver of the 
                                tenant's last month of rent.
                    (E) No waiver of rights.--Any waiver of rights 
                provided by this paragraph shall be void.
            (3) Prohibiting discrimination on the basis of source of 
        income.--
                    (A) Prohibition.--The Authority shall ensure that 
                with respect to any unit of permanently affordable 
                social housing, no person may engage in any conduct 
                because of the source of income of a person that would 
                be unlawful under the Fair Housing Act (42 U.S.C. 3601 
                et seq.) if the conduct were engaged in because of a 
                protected characteristic under that Act.
                    (B) Source of income.--For purposes of this 
                subparagraph, the term ``source of income'' includes--
                            (i) a housing voucher under section 8 of 
                        the United States Housing Act of 1937 (42 
                        U.S.C. 1437f) and any form of Federal, State, 
                        or local housing assistance provided to a 
                        family or provided to a housing owner on behalf 
                        of a family, including rental vouchers, rental 
                        assistance, and rental subsidies from 
                        nongovernmental organizations;
                            (ii) any amount received by an individual 
                        (including any amount to which an individual is 
                        entitled for which payment is made to a 
                        representative payee) by reason of entitlement 
                        to--
                                    (I) a monthly benefit under title 
                                II or XVI of the Social Security Act 
                                (42 U.S.C. 401 et seq., 1381 et seq.); 
                                or
                                    (II) a benefit under the Railroad 
                                Retirement Act of 1974 (45 U.S.C. 231 
                                et seq.);
                            (iii) income received by court order, 
                        including spousal support and child support;
                            (iv) any payment from a trust, guardian, or 
                        conservator; and
                            (v) any other lawful source of income.
            (4) Admissions restrictions.--
                    (A) Screening.--A social housing provider may 
                screen applicants for permanently affordable social 
                housing solely for the purpose of determining their 
                ability to pay rent or otherwise comply with the 
                material terms of the lease, provided the screening 
                process and criteria comply with subparagraph (B).
                    (B) Rules and procedures.--A social housing 
                provider may not discriminate in a manner prohibited 
                by--
                            (i) section 804 of the Fair Housing Act (42 
                        U.S.C. 3604); or
                            (ii) section 701(a) of the Equal Credit 
                        Opportunity Act (15 U.S.C. 1691(a)).
            (5) Prohibited bases of discrimination.--A social housing 
        provider may not implement any rules or procedures that deny or 
        discriminate against an eligible applicant for permanently 
        affordable social housing solely on the basis of--
                    (A) irrelevant criminal history, in accordance with 
                the final rule of the Department entitled ``Reducing 
                Barriers to HUD-Assisted Housing'', published in the 
                Federal Register on April 10, 2024 (89 Fed. Reg. 
                25332);
                    (B) credit history; or
                    (C) any other information that is not directly 
                related to, or directly predictive of, an applicant's 
                ability to pay rent or otherwise comply with the 
                material terms of the lease.
            (6) Democratic control.--In the case of social housing that 
        is a multifamily rental property, tenants shall have control of 
        living and operating conditions in the property through a 
        democratically elected resident organization, board, or 
        council.
            (7) Resident associations and tenant organizations.--
        Residents of permanently affordable social housing shall have 
        the right to organize to form resident associations and tenant 
        organizations with automatic bargaining rights to address 
        issues related to their living environment.
            (8) Right to return without re-screening.--A household that 
        must relocate from a dwelling unit in a property temporarily 
        due to the Authority's acquisition, rehabilitation, or 
        demolition of the property shall have a right to return to the 
        property and shall not be excluded from occupancy based on any 
        re-screening, income eligibility, or income targeting.
            (9) Phased-in rent increase.--In the case of a household 
        occupying a dwelling unit in a property that initially is not 
        social housing and has a rent lower the maximum rental allowed 
        under subsection (d), upon conversion of the property to 
        permanently affordable social housing, the social housing 
        provider shall phase in any potential rent increase at a rate 
        that does not exceed, over any 5-year period, 10 percent each 
        year.
            (10) Resident procedural rights in leases.--
                    (A) In general.--A lease for occupancy of a 
                dwelling unit in permanently affordable social housing 
                shall incorporate each item under this paragraph.
                    (B) Termination notification.--The social housing 
                provider shall provide adequate written notice of 
                termination of the lease, which--
                            (i) except as provided in clause (ii), may 
                        not be fewer than 30 days; or
                            (ii) if a tenant is engaging in serious 
                        criminal activity on the premises that poses an 
                        imminent and direct threat to the health and 
                        safety of other tenants, may not exceed 30 
                        days.
                    (C) Grievance process.--
                            (i) Opportunity for information hearing.--
                        For any dispute, termination of assistance, 
                        eviction, or other adverse determinations 
                        related to a resident's tenancy, welfare, or 
                        status, the social housing provider shall 
                        provide the resident an opportunity for an 
                        informal hearing.
                            (ii) Notice of opportunity to request 
                        informal hearing.--A social housing provider 
                        shall provide residents notice of the 
                        opportunity to request an informal hearing 
                        described in clause (i).
                            (iii) Rule of construction.--This 
                        subparagraph shall not provide any right to an 
                        informal hearing for a class grievance or to 
                        settle a dispute between residents not 
                        involving the social housing provider.
    (f) Additional Requirements for Social Housing Providers.--
            (1) Waiting list.--
                    (A) In general.--
                            (i) Establishment of waiting lists and 
                        resident selection and transfer policy.--
                                    (I) Waiting lists.--The Authority 
                                shall establish--
                                            (aa) a waiting list for all 
                                        social housing; or
                                            (bb) a waiting list for 
                                        each social housing site.
                                    (II) Resident selection and 
                                transfer policy.--The Authority shall 
                                establish a resident selection and 
                                transfer policy under which individuals 
                                on an existing waiting list maintained 
                                by a public housing agency may be 
                                transferred to a waiting list 
                                established under subclause (I).
                            (ii) Priority for residents of occupied 
                        properties to reside in property.--In the case 
                        of an occupied property that is converted to 
                        social housing, existing tenants shall receive 
                        priority to live in the social housing.
                            (iii) Public housing.--The Authority shall 
                        determine the best policies and procedures to 
                        transition applicants from any public housing 
                        waiting list to a social housing waiting list 
                        established under clause (i)(I), and shall 
                        consider--
                                    (I) transferring applicants from an 
                                existing site-based public housing 
                                waiting list to a new site-based social 
                                housing waiting list;
                                    (II) transferring applicants from 
                                an existing site-based public housing 
                                waiting list to a waiting list for all 
                                social housing;
                                    (III) transferring an existing 
                                community-wide public housing waiting 
                                list to a different community-wide 
                                social housing waiting list; and
                                    (IV) informing applicants on a 
                                community-wide public housing waiting 
                                list how to transfer their application 
                                to 1 or more newly created site-based 
                                social housing waiting lists.
                    (B) Means of contact.--The owner of a real property 
                being converted to permanently affordable social 
                housing and the social housing provider may determine 
                the most appropriate means of informing applicants on 
                any public housing or social housing community-wide 
                waiting list in the community in which the property is 
                located about the opportunity to apply for, or be 
                transferred to a waiting list for, the new social 
                housing, given the number of applicants, available 
                resources, and the admissions requirements of the 
                property, including--
                            (i) contacting each applicant on the 
                        waiting list by direct mail or email;
                            (ii) advertising the availability of 
                        housing to the population that is less likely 
                        to apply, both minority and non-minority 
                        groups, through various forms of media within 
                        the marketing area, such as radio stations, 
                        posters, and newspapers;
                            (iii) informing local nonprofit entities 
                        and advocacy groups, such as disability rights 
                        groups; and
                            (iv) conducting other outreach as 
                        appropriate.
                    (C) Requirements.--
                            (i) Persons with disabilities or limited 
                        english proficiency.--Any activity by a social 
                        housing provider to contact applicants on a 
                        public housing waiting list or social housing 
                        waiting list shall be conducted in a manner 
                        that ensures--
                                    (I) effective communication with 
                                persons with disabilities; and
                                    (II) meaningful access for persons 
                                with limited English proficiency (which 
                                may include communications in languages 
                                other than English).
                            (ii) Site-based waiting list.--When using a 
                        site-based waiting list, a social housing 
                        provider shall consider waiting list and 
                        transfer policies that expand opportunities for 
                        tenants seeking an emergency transfer under, or 
                        consistent with, the owner's emergency transfer 
                        plan, and allowing for easier moves between 
                        assisted properties.
                    (D) Administration.--After the initial waiting list 
                has been established for a social housing property, the 
                social housing provider shall administer the waiting 
                list in a manner that facilitates the fair and uniform 
                treatment of applicants for, residents of, and units at 
                the property, in accordance with all applicable civil 
                rights and fair housing laws and regulations.
            (2) Access to records.--A social housing provider shall 
        cooperate with any reasonable requests for information made by 
        the Authority (if applicable), an applicant, or a resident, 
        including to support the permanently affordable social housing 
        program evaluation, and including project financial statements, 
        operating data, and rehabilitation work.
            (3) Operating budget.--A social housing provider that is an 
        eligible entity shall--
                    (A) submit to the Authority annually an operating 
                budget for the permanently affordable social housing 
                and such other information as the Authority considers 
                necessary to assess the financial health of the 
                permanently affordable social housing; and
                    (B) determine annually whether the permanently 
                affordable social housing--
                            (i) is generating excess cash that shall be 
                        reinvested or returned to the Authority; or
                            (ii) is in need of operating assistance, 
                        including adequate capitalization of reserves 
                        for replacement, from the Authority.
            (4) Reinvestment of surplus.--A social housing provider 
        shall prioritize any reinvestment of surplus operating funds 
        for social housing dwelling units for families whose household 
        incomes are at or below 30 percent of area median income.
            (5) Economic opportunities for low- and very low-income 
        persons.--The operation of permanently affordable social 
        housing shall be considered a program that provides housing and 
        community development assistance for purposes of section 3 of 
        the Housing and Urban Development Act of 1968 (12 U.S.C. 
        1701u).
    (g) Private Right of Action.--A tenant of a permanently affordable 
social housing who is charged a rent that exceeds the amount permitted 
under subsection (d) or who is evicted in violation of subsection (e) 
may bring in an appropriate district court of the United States a civil 
action to obtain injunctive relief, compensatory damages and punitive 
damages, or such other relief as the court may consider to be 
appropriate.

SEC. 8. LABOR AND BUY AMERICA PROVISIONS.

    (a) In General.--In carrying out their respective authorities under 
this Act, the Authority and each eligible entity --
            (1) shall ensure that construction materials and 
        manufactured products used are--
                    (A) substantially manufactured, mined, and produced 
                in the United States in accordance with section 8302 of 
                title 41, United States Code (including the amendments 
                to that section made by the Build America, Buy America 
                Act (subtitle A of title IX of division G of the 
                Infrastructure Investment and Jobs Act (41 U.S.C. 8301 
                note; Public Law 117-58))); and
                    (B) to protect workers and residents, included in 
                the Recommendations of Specifications, Standards, and 
                Ecolabels for Federal Purchasing list (or a successor 
                document) developed under the Environmentally 
                Preferable Purchasing Program of the Environmental 
                Protection Agency;
            (2) shall ensure that all laborers and mechanics employed 
        by contractors or subcontractors in the performance of 
        construction, prosecution, completion, or repair work carried 
        out, in whole or in part, with assistance made available under 
        this Act, including negotiable instruments described in section 
        4(d), shall be paid wage rates not less than those prevailing 
        on projects of a similar character in the locality, as 
        determined by the Secretary of Labor, in accordance with 
        subchapter IV of chapter 31 of title 40, United States Code;
            (3) with respect to any construction project for which the 
        total estimated cost of the construction is $25,000,000 or 
        more, shall ensure each contractor and subcontractor engaged in 
        the construction on the project agrees, for the project, to 
        negotiate or become a party to a project labor agreement as 
        that term is defined in section 22.502 of title 48, Code of 
        Federal Regulations (as in effect on the date of enactment of 
        this Act);
            (4) may not hire employees through a temporary staffing 
        agency, unless the project is not being carried out under a 
        project labor agreement and the relevant State workforce agency 
        certifies that temporary employees are necessary to address an 
        acute, short-term labor demand;
            (5) shall implement measures to ensure that outreach and 
        recruitment efforts extend to local and underrepresented 
        communities, including through support for pre-apprenticeship 
        programs or the adoption of local hire provisions to the extent 
        permitted by law;
            (6) shall adopt--
                    (A) an explicit policy on any issue involving the 
                organization of employees, including the employees of 
                all contractors and subcontractors engaged in the 
                construction on the project, for purposes of collective 
                bargaining, not to deter the employees with respect 
                to--
                            (i) labor organizing for the employees 
                        engaged; and
                            (ii) the employees' choice to form and join 
                        labor organizations;
                    (B) such policies that require--
                            (i) the posting and maintenance of notices 
                        in the workplace to notify the employees of 
                        their rights under the National Labor Relations 
                        Act (29 U.S.C. 151 et seq.);
                            (ii) that the employees are, at the 
                        beginning of their employment, provided notice 
                        and information regarding the employees' rights 
                        under the National Labor Relations Act; and
                            (iii) an employer to voluntarily recognize 
                        a labor organization in cases where a majority 
                        of the employees have joined and requested 
                        representation; and
                    (C) a safety and health program that includes all 
                the core elements of a workplace safety and health 
                program, as recommended by the Occupational Safety and 
                Health Administration;
            (7) shall consider an individual performing any service for 
        the social housing provider, a contractor, or subcontractor as 
        an employee, and not an independent contractor, unless--
                    (A) the individual is free from control and 
                direction in connection with the performance of the 
                service, both under the contract for the performance of 
                the service and in fact;
                    (B) the service is performed outside the usual 
                course of the business of the social housing provider, 
                contractor, or subcontractor, respectively; and
                    (C) the individual is customarily engaged in an 
                independently established trade, occupation, 
                profession, or business of the same nature as that 
                involved in such service; and
            (8) shall ensure that the installation, operation, and 
        maintenance of electric vehicle chargers by qualified 
        technicians meets the standards described in section 680.106(j) 
        of title 23, Code of Federal Regulations, or any successor 
        regulation.
    (b) Action To Enforce Independent Contractor Requirement.--A third 
party, including a State or local government, may bring an action in 
any court of competent jurisdiction to enforce the requirement under 
subsection (a)(7).
    (c) Authority for Certain Labor Standards.--With respect to the 
labor standards specified in subsection (a)(2), the Secretary of Labor 
shall have the authority and functions set forth in Reorganization Plan 
Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145 of 
title 40, United States Code.

SEC. 9. DUTY TO SERVE.

    (a) Duty.--To further the purposes of this Act, the Authority shall 
serve rural and Native communities.
    (b) Evaluation and Reporting of Compliance.--
            (1) Evaluation method.--The Authority shall, by regulation, 
        establish effective for 2025 and each year thereafter a method 
        for evaluating whether, and the extent to which, the Authority 
        has complied with the duty under subsection (a) and for rating 
        the extent of such compliance.
            (2) Annual evaluation.--Using the method established under 
        paragraph (1), the Authority shall, for 2025, and each year 
        thereafter, evaluate compliance described in that subparagraph 
        and rate its performance as to extent of compliance.
            (3) Annual report.--The Authority shall annually publish 
        and submitted to the Committee on Banking, Housing, and Urban 
        Affairs of the Senate and the Committee on Financial Services 
        of the House of Representatives a report that contains the 
        evaluation and rating for the year as described in paragraph 
        (2).

SEC. 10. COMMUNITY AND TENANT OPPORTUNITY TO PURCHASE MULTIFAMILY 
              RENTAL PROPERTIES.

    (a) Definitions.--In this section:
            (1) Approved statement of interest.--The term ``approved 
        statement of interest'', with respect to a property, means a 
        qualifying tenant organization's statement of interest in 
        purchasing the property that has been approved by the 
        Authority.
            (2) Covered rental property.--The term ``covered rental 
        property''--
                    (A) means multifamily housing that contains 3 or 
                more separate rental dwelling units and--
                            (i) received a credit under section 41 of 
                        the Internal Revenue Code of 1986 by reason of 
                        subsection (h)(4)(B) of that section;
                            (ii) has a mortgage made by the Secretary 
                        of Agriculture under section 515 of the Housing 
                        Act of 1949 (42 U.S.C. 1485);
                            (iii) has a distressed or nonperforming 
                        mortgage loan held by the Federal National 
                        Mortgage Association or the Federal Home Loan 
                        Mortgage Authority;
                            (iv) secures a mortgage loan issued by a 
                        member institution of a Federal Home Loan Bank; 
                        or
                            (v) has a federally insured mortgage and 
                        has an organization of tenants that has 
                        demonstrated an interest in, and maintained an 
                        approved statement of interest in, purchasing, 
                        subject to the application process and 
                        procedures determined by the Authority; and
                    (B) does not include a student housing dormitory.
            (3) First-look and first opportunity to purchase period.--
        The term ``first-look and first opportunity to purchase 
        period'' means the 30-day period described in subsection 
        (d)(1)(A).
            (4) Notice period.--The term ``notice period'' means the 
        90-day period described in subsection (c)(2)(A).
            (5) Qualifying tenant organization.--The term ``qualifying 
        tenant organization'' means an incorporated tenant 
        organization.
    (b) Excluded Property Transfers.--This section does not apply to--
            (1) any transfer by devise or intestacy or any other 
        transfer made in connection with a bona fide effort to pass an 
        interest in real property to one's devisees or heirs (including 
        such a transfer made in connection with a living trust); or
            (2) any transfer between or among spouses, domestic 
        partners, siblings (including half-siblings, step-siblings, and 
        adoptive siblings), parents (including step-parents and 
        adoptive parents) or guardians and their children, grandparents 
        and their grandchildren, aunts or uncles and their nieces or 
        nephews, great-aunts or great-uncles and their grand-nieces or 
        grand-nephews, or first or second cousins, or any combination 
        thereof.
    (c) Obligation To Provide Notice of Intent To Sell.--
            (1) In general.--The owner of a covered rental property 
        shall provide written notice to tenants and the Authority of 
        the owner's interest in selling, transferring, assigning, or 
        conveying the property or the mortgage on the property, as soon 
        as is practicable in good faith.
            (2) Notice period; procedures.--The owner of a covered 
        rental property may not sell, transfer, assign, or convey the 
        property or the mortgage on the property, including by means of 
        any short sale or sale pursuant to foreclosure, unless the 
        owner--
                    (A) provides written notice to tenants and the 
                Authority not later than 90 days before the property or 
                mortgage would be sold, transferred, assigned, or 
                conveyed; and
                    (B) provides a first look, opportunity to purchase, 
                and right of first refusal to purchase the property in 
                accordance with the procedures and requirements under 
                subsection (d).
    (d) Additional Obligations.--
            (1) First-look and first opportunity to purchase period.--
                    (A) In general.--During the 30-day period beginning 
                on the day after the last day of the notice period, the 
                owner of the covered rental property shall provide 
                eligible entities the first opportunity to purchase the 
                property.
                    (B) Priority for eligible entities.--The owner of 
                the covered rental property may not offer the covered 
                rental property for sale to any other purchaser, 
                solicit any offer or bid to purchase the covered rental 
                property, or otherwise enter into a contract for the 
                transfer, sale, assignment, or conveyance of the 
                covered rental property until after the end of the 
                first-look and first opportunity to purchase period.
            (2) Priority of first look and opportunity to purchase.--
                    (A) In general.--Any eligible entity wishing to 
                take advantage of the priority granted under paragraph 
                (1) with respect to a covered rental property shall 
                provide a notice of offer of sale by the end of the 
                first-look and first opportunity to purchase period.
                    (B) Order of priority.--The owner of covered rental 
                property shall consider offers described in 
                subparagraph (A) according to the following order of 
                priority:
                            (i) An offer from a qualifying tenant 
                        organization that was incorporated before the 
                        notice period and that has a current, approved 
                        statement of interest in purchasing the covered 
                        rental property.
                            (ii) An offer from a qualifying tenant 
                        organization that was incorporated during the 
                        notice period.
                            (iii) An offer from an eligible entity that 
                        a qualifying tenant organization of the covered 
                        rental property has endorsed.
                            (iv) An offer from an eligible entity that 
                        a qualifying tenant organization of the covered 
                        rental property has not endorsed.
            (3) Right of first refusal.--After the owner of a covered 
        rental property complies with subsection (c) and paragraphs (1) 
        and (2) of this subsection, if the owner does not sell the 
        covered rental property to an eligible entity under such 
        paragraph (2) and instead opts to make the covered rental 
        property available for sale to a third party, including by 
        means of any short sale or sale pursuant to foreclosure, any 
        eligible entity shall have the right to match any third-party 
        offer (referred to in this subsection as the ``right of first 
        refusal''.
            (4) Failure to sell.--If the owner of a covered rental 
        property does not enter into a sales contract during the 1-year 
        period beginning on the date on which the right of first 
        refusal under paragraph (3) is triggered, the obligation to 
        provide notice of the interest and intent to sell under 
        subsection (c) shall renew, and the owner may not sell the 
        property except pursuant to subsection (c) and this subsection.
    (e) Rights of Tenants.--
            (1) Tenant notification.--The owner of a covered rental 
        property, in notifying the tenants of the covered rental 
        property of the interest of the owner in selling, transferring, 
        assigning, or conveying the property or the mortgage on the 
        property under subsection (c), shall provide the notice in an 
        accessible manner that clearly outlines the process under this 
        section and available resources.
            (2) Tenant opportunity to purchase.--Not later than the 
        first day of the first-look and first opportunity to purchase 
        period, the owner of a covered rental property shall notify 
        tenants of the opportunity to purchase the covered rental 
        property in an accessible manner that clearly outlines their 
        rights and the resources available under this section to 
        support a purchase.
            (3) Tenant notification of offers.--The owner of a covered 
        rental property shall notify the tenants of the property of 
        each offer to purchase the property made by an eligible entity.
            (4) Tenant organizations.--
                    (A) Right to purchase only as organization.--
                Nothing in subsection (d) shall be construed to provide 
                the right to purchase a covered rental property to an 
                individual tenant.
                    (B) Technical assistance.--As part of the technical 
                assistance provided under section 6(d) and subsection 
                (g) of this section, the Authority shall provide 
                resources to expedite the incorporation of tenant 
                organizations to better allow tenants to participate in 
                the process for purchase of a covered rental property 
                under subsection (d) of this section, including pre-
                notification tenant training especially in areas at 
                high risk for displacement.
            (5) Establishment of resident-owned cooperative or 
        community land trust.--A qualifying tenant organization that 
        wishes to purchase a covered rental property under this section 
        shall establish a resident-owned cooperative or community land 
        trust to purchase the covered rental property.
            (6) Rights after purchase.--If a qualifying tenant 
        organization purchases a covered rental property under this 
        section, the subsequent resident organization may resell the 
        property to an eligible entity.
            (7) Endorsements.--A qualifying tenant organization for a 
        covered rental property may endorse an eligible entity's offer 
        of sale for purposes of the order of priority under subsection 
        (d)(2)(B), by a majority vote of tenants and subject to 
        procedures outlined by the Authority.
            (8) Representatives.--A qualifying tenant organization may 
        retain a legal representative to act as an agent of the 
        qualifying tenant organization for purposes of this section.
            (9) Conveyance of rights.--A tenant of a covered rental 
        property may not assign, transfer, sell, or convey the rights 
        afforded to the tenant under this section.
    (f) Responsibilities of All Interested Parties.--For purposes of 
this section, an eligible entity, including a qualifying tenant 
organization and a legal representative of a qualifying tenant 
organization, and an owner of a covered rental property shall negotiate 
in good faith and communicate within reasonable timeframes.
    (g) Role of Authority.--
            (1) In general.--The Authority shall--
                    (A) establish an Office of Community and Tenant 
                Opportunity to Purchase Act to provide direct technical 
                assistance and grants for technical assistance to 
                eligible entities, and legal representatives of 
                qualifying tenant organizations, in order to support 
                and enhance the ability of eligible entities, including 
                qualifying tenant organizations, to make purchases 
                under this section;
                    (B) establish an application process, procedures, 
                and requirements for qualifying tenant organizations to 
                establish and maintain a statement of interest in 
                purchasing a covered rental property; and
                    (C) finance purchases made by eligible entities 
                under this section, consistent with the purposes of 
                section 5.
            (2) Application for statement of interest in purchasing.--
        The application for a qualifying tenant organization to 
        establish a statement of interest in purchasing a covered 
        rental property shall include such information as the Authority 
        determines appropriate.
            (3) Priorities.--In the funding of purchases made under 
        this section or the approval of a qualifying tenant 
        organization's statement of interest in purchasing a covered 
        rental property, the Authority may prioritize based on the 
        following factors:
                    (A) The affordable housing needs of a region or 
                State.
                    (B) The potential number of permanently affordable 
                housing units.
                    (C) The feasibility of a project.
                    (D) The opportunity to improve the condition and 
                quality of housing for extremely low-income families or 
                low-income families.
                    (E) The pressures of displacement and the 
                opportunity to preserve naturally occurring affordable 
                housing.
                    (F) Any factors related to the purposes or powers 
                of the Authority.
            (4) Noncompliance regulations.--The Authority shall 
        promulgate regulations establishing penalties for noncompliance 
        under this section and appropriate financial penalties to 
        enforce this section.
            (5) General regulations.--The Authority--
                    (A) shall promulgate regulations necessary to carry 
                out this section; and
                    (B) in conjunction with the Secretary and State and 
                local housing agencies, shall promulgate regulations to 
                carry out this section with respect to purchases made 
                by eligible entities.

SEC. 11. MAXIMUM CONTINGENT LIABILITY.

    (a) In General.--The maximum contingent liability of the Authority 
outstanding at any time may not exceed in the aggregate the applicable 
amount under subsection (b).
    (b) Amount Specified.--
            (1) Initial 5-year period.--For purposes of subsection (a), 
        the applicable amount for the 5-year period beginning on the 
        date of the enactment of this Act is $150,000,000,000.
            (2) Subsequent 5-year periods.--Not later than 5 years 
        after the date of enactment of this Act, and not less 
        frequently than once every 5 years thereafter, the Board shall 
        adjust the amount specified in paragraph (1) to reflect the 
        percentage increase (if any) in the Consumer Price Index since 
        the previous adjustment under this paragraph.

SEC. 12. AUTHORITY FUNDS.

    (a) Definitions.--In this section:
            (1) Cost.--The term ``cost'', with respect to a direct loan 
        or loan guarantee, has the meaning given the term in section 
        502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a); 
        and
            (2) Direct loan.--The term ``direct loan'' has the meaning 
        given the term in section 502 of the Federal Credit Reform Act 
        of 1990 (2 U.S.C. 661a).
            (3) Loan guarantee.--The term ``loan guarantee'' has the 
        meaning given the term in section 502 of the Federal Credit 
        Reform Act of 1990 (2 U.S.C. 661a).
            (4) Project-specific transaction costs.--
                    (A) In general.--The term ``project-specific 
                transaction costs''--
                            (i) means the costs incurred by the 
                        Authority for travel and legal expenses and 
                        direct and indirect costs incurred by the 
                        Authority in claims settlements; and
                            (ii) does not include the costs of 
                        information technology (as that term is defined 
                        in section 11101 of title 40, United States 
                        Code).
                    (B) Treatment.--Project-specific transaction costs 
                shall not be considered administrative expenses for the 
                purposes of this section.
    (b) Authority Capital Account.--There is established in the 
Treasury of the United States a fund to be known as the ``Authority 
Capital Account'' to carry out the purposes of the Authority.
    (c) Funding.--The Authority Capital Account shall consist of--
            (1) fees charged and collected under subsection (d);
            (2) any amounts received under subsection (f);
            (3) investments and returns on investments under subsection 
        (h);
            (4) payments received in connection with sales and other 
        business of the Authority;
            (5) any proceeds from bonds sold under section 4(d);
            (6) any amounts appropriated to the Authority Capital 
        Account; and
            (7) all other collections transferred to or earned by the 
        Authority, excluding the cost of direct loans and loan 
        guarantees.
    (d) Fee Authority.--The Authority may charge and collect fees for 
providing services in amounts to be determined by the Board.
    (e) Use of Authority Capital Account.--The Authority may use 
amounts in the Authority Capital Account to carry out the purposes 
described in section 5, including for--
            (1) the cost of direct loans and loan guarantees;
            (2) administrative expenses of the Authority;
            (3) for the cost of providing support authorized by section 
        6;
            (4) project-specific transaction costs;
            (5) payment of all insurance and reinsurance claims of the 
        Authority;
            (6) repayments to the Treasury of the United States of 
        amounts borrowed under subsection (f); and
            (7) dividend payments to the Treasury of the United States 
        under subsection (g).
    (f) Authority To Borrow.--The Authority may borrow from the 
Treasury of the United States such sums as may be necessary to fulfill 
obligations of the Authority and any such borrowing shall be at a rate 
determined by the Secretary of the Treasury, taking into consideration 
the current average market yields on outstanding marketable obligations 
of the United States of comparable maturities, for a period jointly 
determined by the Authority and the Secretary of the Treasury, and 
subject to such terms and conditions as the Secretary of the Treasury 
may require.
    (g) Dividends.--The Board, in consultation with the Director of the 
Office of Management and Budget, shall annually assess a dividend 
payment to the Treasury of the United States if the Authority Capital 
Account is more than 100 percent reserved.
    (h) Investment Authority.--
            (1) In general.--The Authority may request the Secretary of 
        the Treasury to invest such portion of the Authority Capital 
        Account as is not, in the Authority's judgement, required to 
        meet the current needs of the Authority Capital Account.
            (2) Form of investments.--Investments under paragraph (1) 
        shall be made by the Secretary of the Treasury in public debt 
        obligations, with maturities suitable to the needs of the 
        Authority Capital Account, as determined by the Authority, and 
        bearing interest at rates determined by the Secretary of the 
        Treasury, taking into consideration current market yields on 
        outstanding marketable obligations of the United States of 
        comparable maturities.
    (i) Collections.--Interest earned under subsection (h) and amounts, 
excluding fees related to insurance or reinsurance, collected under 
subsection (d), shall not be collected for any fiscal year except to 
the extent provided in advance in appropriation Acts.

SEC. 13. AUTHORIZATION OF APPROPRIATIONS FOR AUTHORITY.

    (a) Authority Funds.--There is authorized to be appropriated to the 
Authority Capital Account established under section 12(b) to carry out 
this Act $30,000,000,000 for each of fiscal years 2025 through 2035.
    (b) Allocations to Indian Tribes and Tribally Designated Housing 
Entities.--
            (1) In general.--The Authority shall allocate not less than 
        5 percent of amounts appropriated under subsection (a) to 
        provide assistance to Indian Tribes and tribally designated 
        housing entities--
                    (A) in accordance with notice and comment 
                rulemaking procedures under section 553 of title 5, 
                United States Code; and
                    (B) in consultation with Indian Tribes, tribally 
                designated housing entities, and the Office of Native 
                American Programs of the Department of Housing and 
                Urban Development.
            (2) Supplement not supplant.--To the greatest extent 
        possible, the allocation described in paragraph (1) shall 
        supplement and not supplant any funding that an Indian Tribe or 
        a tribally designated housing entity receives from a 
        governmental source.
    (c) Allocations to Rural Communities.--
            (1) In general.--The Authority shall allocate not less than 
        10 percent of amounts appropriated under subsection (a) to 
        provide assistance to housing entities in rural communities--
                    (A) in accordance with notice and comment 
                rulemaking procedures under section 553 of title 5, 
                United States Code; and
                    (B) in consultation with the Rural Housing Service 
                of the Department of Agriculture.
            (2) Supplement not supplant.--To the greatest extent 
        possible, the allocation described in paragraph (1) shall 
        supplement and not supplant any funding that a rural housing 
        entity receives from a governmental source.

SEC. 14. AUTHORIZATION OF APPROPRIATIONS FOR PUBLIC HOUSING BACKLOG.

    There is authorized to be appropriated for assistance from the 
Public Housing Capital Fund established under section 9(d) of the 
United States Housing Act of 1937 (42 U.S.C. 1437g(d)) such sums as may 
be necessary to address the public housing capital backlog at the 
Department, which amount shall remain available until expended and, 
notwithstanding subsections (c)(1) and (d)(2) of such section 9, shall 
be allocated to public housing agencies based upon the extent of the 
capital need of each agency, as determined according to the most recent 
physical needs assessment of the agencies, with a minimum amount for 
each agency to be specified by the Authority.

SEC. 15. REPEAL OF FAIRCLOTH AMENDMENT.

    Section 9(g) of the United States Housing Act of 1937 (42 U.S.C. 
1437g(g)) is amended by striking paragraph (3).

SEC. 16. MISCELLANEOUS.

    (a) Savings Clause.--Except as may be otherwise expressly provided 
in this Act, all powers and authorities conferred by this Act shall be 
cumulative and additional to and not in derogation of any powers and 
authorities otherwise existing.
    (b) Severability.--If any provision of this Act, an amendment made 
by this Act, or the application of such provision or amendment to any 
person or circumstance is held to be invalid, the remainder of this Act 
and the amendments made by this Act, and the application of the 
provision or amendment to any other person or circumstance, shall not 
be affected.
    (c) Effective Date; Interim Appointments.--This Act shall take 
effect on the date that is 60 days after the date of enactment of this 
Act, or on such earlier date as the President shall specify by 
Executive order published in the Federal Register, except that any of 
the officers provided for in section 4(c) may be nominated and 
appointed, as provided in that section, at any time after the date of 
enactment.
    (d) Designation of Temporary Officers.--
            (1) In general.--If 1 or more officers required by this Act 
        to be appointed by the President, by and with the advice and 
        consent of the Senate, have not entered office as of the 
        effective date of this Act under subsection (c), the President 
        may designate any person who was an officer of the Department 
        as of the day before that effective date to serve in that 
        office in an acting capacity until the earlier of--
                    (A) the date on which the office is filled as 
                provided in this Act; or
                    (B) the date that is 60 days after the effective 
                date.
            (2) Compensation.--While serving in an office in an acting 
        capacity as described in paragraph (1), a person shall receive 
        compensation at the rate provided by this Act for that office.
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